Swap Facility for External Commercial Borrowings and Overseas Foreign Currency Borrowings
UR
- Applies toAll regulated entities
- StatusIn force
- ImportanceFOR INFORMATION
- IssuedJun 08, 2026
- Amendmentsnone tracked
- Length12 points in 2 sections · 2 min read
The four dates on this rule
- PublishedJun 08, 2026The day RBI put this document out.
- Starts to applyNot statedNot stated separately in this document. Read the rule itself before you assume a start date.
- Time to get readyNot statedCannot be worked out until the day it starts to apply is known.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
This rulebook is short, and the page is short with it. This document is 1240 words long. It states 12 separate rules. So the page carries 12 points, not the thirty a long rulebook carries. Nothing has been left out to make it shorter.
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Numbers to remember
| five years | Swap maturity must match the loan repayment schedule but cannot be for more than five years. |
| 1.5 percent | The swap will be priced at a fixed annual rate of 1.5 percent, compounded every six months. |
| January 15, 2027 | The swap facility starts from this circular date and stays open till January 15, 2027. |
| February 09, 2026 | External commercial borrowing terms will continue as per the February 09, 2026 borrowing and lending regulations. |
What it says
Must know
1. maximum swap tenor
Swap maturity must match the loan repayment schedule but cannot be for more than five years.
2. swap pricing
The swap will be priced at a fixed annual rate of 1.5 percent, compounded every six months.
3. effective period
The swap facility starts from this circular date and stays open till January 15, 2027.
4. ecb terms unchanged
External commercial borrowing terms will continue as per the February 09, 2026 borrowing and lending regulations.
Do it
1. minimum swap size
Banks must do swaps in blocks of 1 million United States dollars.
2. reverse leg payment
At maturity, banks must repay rupees plus swap premium to get back the dollars.
Background
1. swap only in usd
The Reserve Bank of India will offer the swap facility only in United States dollars.
2. daily operation
The swap facility will run every working day in Mumbai, except Saturdays and holidays.
3. weekly swap limit
Each bank's weekly swap limit equals its eligible external and overseas borrowing inflows during earlier weeks, in dollar terms.
4. first leg rate
In the first leg, the bank will sell dollars to the Reserve Bank of India at the FBIL Reference Rate.
5. spot settlement
The first leg of the swap will be settled on a spot basis.
6. no isda needed
Banks do not need to sign any International Swaps and Derivatives Association agreement with the Reserve Bank of India.